20.11.2020

Corporate bond of 200 million euros to finance investments successfully issued

Corporate bond of 200 million euros to finance investments successfully issued The corporate bond serves to finance the enormously high investments of 50Hertz in order to further promote the energy transition. Photo: Jan Pauls.

With a corporate bond of 200 million euros, Eurogrid GmbH, the parent company of transmission system operator 50Hertz, secures liquidity for the further expansion of the power grid necessary for the energy transition. The financial transaction, with a duration of 20 years and an interest rate of 0.875 percent per year, was carried out as a so-called private placement with the support of UniCredit and is listed on the regulated market in Luxembourg, as are all bonds of the 50Hertz parent company. The shareholders of Eurogrid GmbH are the Belgian Elia Group with 80 percent and the German KfW bank group with 20 percent.

Marco Nix, Chief Financial Officer of 50Hertz, explains: "With this private placement, we have now secured part of our investments in grid infrastructure, which are tremendously high and necessary for the energy transition. The extraordinarily spontaneous placement under excellent conditions in terms of duration and interest rate reflects the trust of the financial markets in the currently applicable regulatory framework, in 50Hertz's professionalism and in our long-term investment plans, with which we drive the energy transition forward. It was only possible to secure the favourable interest conditions for grid expansion in today's fluctuating market environment thanks to this strong position. We also know that we have good partners at our side."

According to Jan Kupfer, Head of Corporate & Investment Banking Germany of UniCredit, the successful conclusion of the private placement illustrates the convincing position of Eurogrid GmbH on the one hand and the willingness of institutional investors to support sustainable investments in the energy transition with long long-term financing on the other hand: "Given that the markets are still highly volatile, the right timing and efficient communication among all participants were the key to this success."

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